This Tiny Biotech Stock Is Up 200% 📈

Good morning. It’s July 25th, and today we will cover disappointing quarterly earnings from Ford, Dow, and STMicroelectronics, as well as Chipotle’s positive second-quarter performance.

Previous Close 📈

A sharp sell-off in tech stocks yesterday caused all three key indices to fall, with the tech-heavy Nasdaq Composite decreasing by 3.64%.

Futures

Futures linked to the S&P 500 and Nasdaq are down, while those tied to the Dow Jones Industrial Average are flat.

What to Watch

Earnings season continues. Today we will have Union Pacific, Northrop Grumman, Honeywell International, Valero Energy, and RTX declaring their results before the market opens.

Keep a close eye on GDP data, initial jobless claims, and the durable goods report, all of which are scheduled to be released at 8:30 a.m.

DexCom, Digital Realty Trust, and Arthur J. Gallagher & Co will be sharing their earnings data after the market closes.

Automobile

Ford's Q2 Earnings Fall Short, Shares Plummet Amid Ongoing Quality Challenges

Ford Motor Co. reported disappointing second-quarter earnings, with adjusted profit falling to 47 cents per share, missing analysts' expectations of 68 cents.

The announcement led to an 11% drop in Ford's stock during after-hours trading. Despite efforts to address structural inefficiencies and transform both its gas-engine and electric vehicle (EV) operations, Wall Street remains unconvinced.

CEO Jim Farley has prioritized fixing quality issues since taking over in October 2020. However, warranty expenses increased by $800 million in Q2 due to older vehicles, leading to more recalls. Despite this, Ford maintained its annual earnings forecast of $10-12 billion before interest and taxes.

The company is adjusting its EV strategy amid declining demand and stiff competition from Tesla and Chinese EV manufacturers. Ford reported a $1.1 billion operating loss for its EV and software division in Q2. Meanwhile, Ford's commercial vehicle business posted a $2.6 billion operating profit.

Is This the Smartest Biotech Pick of 2024?

Find out why billionaire investors insist on learning about hot stocks BEFORE main street.

With patent pending tech for a new medical delivery device, could this stock be the smartest play of 2024?

>> See 2024's Smartest Potential Biotech Pick (Beat the Billionaires With THIS Secret?)

Fast Food

Chipotle Surpasses Q2 Earnings and Revenue Estimates, Traffic Increases

Chipotle Mexican Grill reported higher-than-expected earnings and revenue for the second quarter, driven by increased restaurant customer traffic. The company's stock rose by about 3% in extended trading after initially gaining 13%.

For the quarter ending June 30, Chipotle reported adjusted earnings per share of 34 cents, surpassing analysts' estimates of 32 cents. Revenue reached $2.97 billion, also above the expected $2.94 billion. 

Net income rose to $455.7 million, or 33 cents per share, from $341.8 million, or 25 cents per share, a year ago, largely due to price increases offsetting higher avocado prices and increased oil use for frying tortilla chips.

Same-store sales climbed 11.1%, exceeding StreetAccount's estimate of 9.2%. Restaurant traffic increased by 8.7%, despite social media backlash about portion sizes. Chipotle is now emphasizing training to ensure customer satisfaction with portion sizes.

Chemicals

Dow Reports Lower Q2 Profits, Sales Decline 4%

Chemical manufacturer Dow Inc. missed second-quarter profit estimates, citing lower prices and decreased demand as key factors.

The company reported operating earnings of 68 cents per share for the quarter ending June 30, falling short of the 72 cents anticipated by analysts. The company's net sales dropped 4% to $10.92 billion, slightly below the $11 billion expected.

Economic slowdowns in major markets contributed to Dow's weaker performance. In Germany, business activity declined due to reduced demand for industrial goods and strong competition from China.

Concurrently, China's manufacturing sector contracted in May and June, with key raw material stock indexes remaining in contraction territory.

Technology

STMicroelectronics Shares Plunge After Cutting 2024 Revenue Forecast Again

STMicroelectronics (STM) reduced its full-year revenue and margins guidance for the second time, citing weak industrial orders and declining automotive demand. This announcement led to a roughly 10% drop in its U.S.-listed shares and a 10.5% decline in its Paris-listed shares, marking their worst day in over three years.

The chipmaker, which supplies Tesla and Apple, now anticipates 2024 revenue between $13.2 billion and $13.7 billion, down from the previous estimate of $14-15 billion. Margins are expected to be around 40%, slightly below the prior "low 40s" forecast.

CEO Jean-Marc Chery noted that customer orders for industrial products did not improve as expected, and automotive demand fell during the quarter. The company has been affected by high inventories and weakening industrial demand. Additionally, European electric vehicle sales growth slowed to just 1.3% in the first half of the year.

Psyence Biomedical Ltd. [PBM] - Last Close: $0.39

Psyence Biomedical Ltd.’s stock is up by nearly 200% in the pre-market session.

The biotech company is working on the use of natural psychedelics in mental health and well-being.

Its stock went up after the firm announced that it is now ready to conduct a Phase IIb clinical trial to evaluate nature-derived psilocybin as a potential treatment for Adjustment Disorder following an advanced cancer diagnosis in the Palliative Care context.

Viking Therapeutics [VKTX] - Last Close: $50.41

Viking’s stock shot up in after-market trade yesterday and is continuing to rise today in pre-market trade.

The key driver behind this rise is the positive update that the company issued on its obesity and NASH drug candidates yesterday.

The stock is trading at nearly 18% higher than its previous close.

Mira Pharmaceuticals Inc [MIRA] - Last Close: $2.36

Mira Pharma’s stock is flying high in pre-market trade.

The company made a positive announcement this morning regarding Ketamir-2, its drug candidate, which is being investigated as a potential treatment for neurological and neuropsychiatric disorders.

Post-news, shares in the company went up by more than 50%.

Everything else

• Stellantis shares plunge 10% after weak first-half earnings.

• Southwest plans bold moves and will end open seating.

• Porsche and creditors discuss a rescue plan for Varta AG.

• Bill Ackman plans a massive $25 billion IPO for a new investment fund.

• Hyundai Motor records a 25% increase in profits on the back of demand from the U.S. market.

• Online education firm 2U files for Chapter 11 bankruptcy.

• Universal Music Group shares tank after disappointing growth in the streaming segment.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.